LONDON: European equities held steady on Thursday as investors welcomed the US Federal Reserve's commitment to keep interest rates low, and digested upbeat German unemployment data and company results.
Markets were also somewhat subdued ahead of first-quarter economic growth figures in the United States and a royal wedding holiday in Britain.
London's benchmark FTSE 100 index dipped 0.14 percent to 6,060.07 points in low-volume midday trade, before the long four-day weekend.
Frankfurt's DAX 30 rose 0.36 percent to 7,431.48 points and in Paris and the CAC 40 advanced 0.46 percent to 4,086.18.
In foreign exchange deals, the euro hit a 16-month high point against the dollar ahead of US growth data, helping to send the price of gold to a record high above $1,534 an ounce.
The dollar has dived since the US central bank's Federal Open Market Committee repeated its pledge late on Wednesday to keep interest rates at "exceptionally low levels for an extended period".
However, in reaction, gold rose to a new record price.
The weaker greenback makes dollar-priced commodities cheaper for buyers using stronger currencies and therefore tends to stimulate demand.
"A reaffirming pledge of support for the US economic recovery through sustained low interest rates from Fed Chairman Ben Bernanke last night has helped to maintain UK equities in positive territory along with earnings from Shell and stronger metal prices," said City Index analyst Joshua Raymond.
Anglo-Dutch oil giant Shell turned in a 60-percent net profit leap for the first quarter on Thursday, as the group benefited from resurgent oil prices and the sale of non-core assets.
Earnings after taxation rallied to $8.78 billion (six billion euros) in the three months to March, up from $5.48 billion a year earlier, the company said in a results statement. Sales rose 28 percent to almost $110 billion.
In response, Shell's 'B' share price gained 0.41 percent to 2,326.50 pence in midday deals.
European investors also drew comfort from official data showing that German unemployment dropped slightly in April, hovering around the lowest level for about 20 years, as Europe's top economy continues to power ahead.
Later on Thursday, London closes for a four-day break, with an extra public holiday on Friday to mark the wedding of Prince William and Kate Middleton.
The market reopens next Tuesday.
The four-day weekend comes hot on the heels of the recent Easter bank holiday weekend.
"As we head towards another long weekend, it's no surprise that trading levels are low," added Yusuf Heusen, senior sales trader at IG Index.
In earlier Asian deals on Thursday, Tokyo leapt 1.63 percent, after a strong advance on Wall Street, shrugging off a raft of gloomy domestic data after the March earthquake and tsunami.
The Tokyo market will be closed on Friday to kick off the annual Golden Week holidays. The bourse will open only on Monday and Friday next week.
In New York on Wednesday the tech-rich Nasdaq Composite index hit its highest level in more than 10 years as US stocks pushed upward after the Fed rate decision.
Riding news that the central bank would not raise ultra-low interest rates, the Dow Jones Industrial Average also surged, adding 95.59 points or 0.76 percent to finish at 12,690.96, a three-year high.
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